Port of Long Beach $942M budget adds staff

LONG BEACH - The Port of Long Beach's fiscal plan for 2013 includes more than $720 million in capital spending and the hiring of 25 more employees to support major projects, including the replacement of the Gerald Desmond Bridge and the development of Middle Harbor.

The Board of Harbor Commissioners on Monday endorsed a $942 million Harbor Department budget for fiscal year 2013, a 12 percent jump from last year's budget, or about

$102 million.

The Harbor Department's budget, which was five months in the making, will be part of the city's overall budget, which is set to be delivered to Mayor Bob Foster on July 3 and to the City Council on July 27.

The council is required under the City Charter to approve the budget by mid-September. The fiscal year begins on Oct. 1.

"We're moving in the right direction," Commissioner Rich Dines said. "We're investing the money where it should be and that's in our capital improvement projects, so this port will remain competitive for decades to come."

Much of the increase in the Harbor Department's budget comes from capital spending, which rose by $90 million from FY 2012. That spending is expected to be robust over the next decade, with an estimated $4.4 billion to be spent, said Chief Financial Officer Sam Joumblat.

The budget also includes the hiring of 25 more employees to cut down on its reliance on contractors and support the construction program. Overall, port-related projects are creating more than 7,000 jobs throughout the region, officials estimate.

Projects budgeted for fiscal year 2013 include:

Continued building of Middle Harbor, which will fuse two aging terminals into one massive terminal and will include new, eco-friendly technology that is expected to increase cargo movement and decrease air pollution;

Replacing the Gerald Desmond Bridge, on which construction is expected to begin in 2013;

Designing and building infrastructure that will allow container ships to electrically plug in while at berth on Piers A, C, G, J and T.

In terms of security, the port budgeted $1 million to further secure the port with lighting, fences and barriers and $8.5 million to enhance police support.

Before voting on the budget, port officials spoke of the fiscal challenges facing the city of Long Beach, which faces an estimated $33.8 million three-year deficit.

Port officials said they are prepared to absorb city workers who may be cut from the upcoming budget. The port also hired workers whose jobs were in jeopardy after the dissolution the Long Beach Redevelopment Agency by the state.

"It's not lost on us, the situation we have over at the city with the deficits," Executive Director Chris Lytle said. "We're very fortunate. It heartens me that we have the opportunity to be ... adding people in a difficult time like this."

Port supports PBID

The Harbor Commission also voted Monday to support the renewal of the Downtown Long Beach Property Based Improvement District, or PBID, which is an annual fee levied on downtown property owners to pay for public safety, economic and other services and programs specific to the area.

The proposed PBID has drawn controversy because it would extend the fee to residential property owners.

The Port of Long Beach is a stakeholder in PBID because it owns property south of Broadway that the World Trade Center and the Hilton Hotel use for parking. The commission followed the council's lead in signing the petition to renew the PBID for another 10 years.